Why Are Information Silos Important and What Do They Mean?

What Are Information Silos and Why Are They Important?


Information Silos are an organizational phenomenon. They are not always positive but they can definitely become negative when they result in the fragmentation of information and data that is isolated from other sources. When this happens, it can make it more challenging to find the right information at the needed time. But, what exactly are Information Silos and why are they important?

In our third episode of Uptime with Richard, we’ll understand in detail everything about Information Silos and why they are important for your organization. We’ll also provide you with examples of Information Silos, explain how to identify them within your company, and show you how to break them down.

Quick Fact: Workers spend 36% of their workdays seeking and compiling information, according to CMS Wire. However, 44% of the time, they cannot locate the data. Information Silos are the root cause of this lost time and effort.


What Are Information Silos?

The term “silo” has been used in management for many years. It often refers to a lack of cohesiveness within an organization. In the vast majority of businesses, this problem has emerged repeatedly.

Information Silos are specific information assets within your company that isn’t being shared with the rest of your organization. They are defined by the fact that they aren’t connected with other data sources within your business. Silos usually form because of a cultural or organizational preference for keeping data separate rather than bringing it together. Silos might exist for a variety of reasons. This can depend on the types of information assets that are being isolated, the organizational culture, and the different preferences of multiple employees. Silos can be caused by several factors, including cultural norms and organizational structures, aligned incentives across siloed departments, and restrictive laws


Information SilosExamples of Information Silos

  • Missing, outdated, or unorganized data in a CRM.
  • A flawed integration of a tool or set of tools.
  • Forgetting to include essential email conversations with decision-makers.
  • Using too many tools at once makes information scattered and difficult to find.
  • Quote-to-cash operations that move more slowly due to process complexity.

Key Takeaway

Silos are created when different teams, departments, or areas of a company start to become isolated and don’t share information with each other. Information Silos are important because they can lead to inefficient use of resources and poor decision-making. They can be caused by cultural norms, organizational structures, aligned incentives, and restrictive laws. The most common type of Information Silos are those that exist in marketing, where marketing owns its budgets, KPIs, and content.

A business owner must create clear plans for their staff members of what they are trying to accomplish; they can take the help of a third-party service provider who will take care of the data strategy and handling. They must also create a setting where workers can cooperate and speak with one another. Through cutting-edge features that encourage productivity and always keeping everyone on the same page, Protected Harbor is here to help.